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    Assignment Business 2019

    Uploaded by

    Shik Isha Bhurosee
    The document provides instructions for students submitting assignments for the Business Economics module at the Open University of Mauritius. It outlines that: 1) Assignments must follow all formatting guidelines and be submitted by the deadline as a hard copy to the lecturer, with electronic copies for backup only. 2) Late submissions will be penalized 2% per day. 3) The university takes no responsibility if students fail to submit assignments correctly. It then provides details of an assignment on elasticities that must be answered in 1200-1500 words by October 12th for 50 marks. The assignment includes questions on price and income elasticities of demand for various goods, cross-price elasticities, and the impacts of

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    Assignment Business 2019

    Uploaded by

    Shik Isha Bhurosee
    145 views4 pages
    The document provides instructions for students submitting assignments for the Business Economics module at the Open University of Mauritius. It outlines that: 1) Assignments must follow all formatting guidelines and be submitted by the deadline as a hard copy to the lecturer, with electronic copies for backup only. 2) Late submissions will be penalized 2% per day. 3) The university takes no responsibility if students fail to submit assignments correctly. It then provides details of an assignment on elasticities that must be answered in 1200-1500 words by October 12th for 50 marks. The assignment includes questions on price and income elasticities of demand for various goods, cross-price elasticities, and the impacts of

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    The document provides instructions for students submitting assignments for the Business Economics module at the Open University of Mauritius. It outlines that: 1) Assignments must follow all formatting guidelines and be submitted by the deadline as a hard copy to the lecturer, with electronic copies for backup only. 2) Late submissions will be penalized 2% per day. 3) The university takes no responsibility if students fail to submit assignments correctly. It then provides details of an assignment on elasticities that must be answered in 1200-1500 words by October 12th for 50 marks. The assignment includes questions on price and income elasticities of demand for various goods, cross-price elasticities, and the impacts of

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    145 views4 pages

    Assignment Business 2019

    Uploaded by

    Shik Isha Bhurosee
    The document provides instructions for students submitting assignments for the Business Economics module at the Open University of Mauritius. It outlines that: 1) Assignments must follow all formatting guidelines and be submitted by the deadline as a hard copy to the lecturer, with electronic copies for backup only. 2) Late submissions will be penalized 2% per day. 3) The university takes no responsibility if students fail to submit assignments correctly. It then provides details of an assignment on elasticities that must be answered in 1200-1500 words by October 12th for 50 marks. The assignment includes questions on price and income elasticities of demand for various goods, cross-price elasticities, and the impacts of

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    © All Rights Reserved
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    OPEN UNIVERSITY of MAURITIUS

    Module Name: Business Economics


    Lecturer’s Name: Mr Anesh Hevin Ramsarakha

    INSTRUCTIONS TO STUDENTS for assignments:

    Read properly the mode of submission


    Please note that any assignment submitted after the deadline, marks will be deducted as per
    assignment submission procedure document.
    Format: Please follow the guidelines in the document “Guide to writing assignments” available
    on Moodle.
    You are required to conform to Harvard referencing style.
    Please include a bibliography at the end of your document.
    Plagiarism/collusion will be heavily penalised and may result in non-award of marks.
    POINTS TO REMEMBER WHEN SUBMITTING YOUR ASSIGNMENT:
    Mode of submission: Please submit a hard copy ONLY and include the name of the Lecturer,
    Programme Name & your respective Programme Manager on the envelope and copy the
    assignment to [email protected] by or before due date. The electronic copy on
    [email protected] is a back-up only and will not be marked.
    All assignments submitted should include the new TRIPLICATE Form (available at
    OUCC/Reduit)
    When you are submitting the hard copy, please submit to the respective tutor on the due
    date during the time of the session of that tutor. If you wish to submit before the deadline,
    submit to Learning Resource Centres {Reduit (weekdays open) before due date. Assignments
    received outside these hours and after the deadline are considered late submissions.
    In case the hard copy is received after the due date, marks will be deducted as per OU policy even
    if the soft copy has been sent on the due date. The soft copy is not considered a submission. The
    onus is on learner to ensure that the hard copy reaches before/on the due date. The current
    penalty is 2% per day (weekends and public holidays included) for any assignment received after
    the due date which the tutor will deduct from the final mark.

    The Open University of Mauritius will not hold itself responsible or liable for the non-award of
    marks if you fail to submit the assignment as per the required mode of submission.

    1
    Module Name: Business Economics
    Lecturer’s Name: Anesh Hevin Ramsarakha
    Date of Submission: 12th October 2019
    Total Marks: 50 marks
    Word limit: 1200- 1500 words

    Assignment question-Answer all questions

    1. The data below gives estimates of the elasticity of demand for selected
    foods in the UK.

    Income elasticity of demand Price elasticity of demand

    Beef 0.10 Beef -1.24

    Margarine -0.22 Margarine -0.37

    Fresh Potatoes -0.43 Fresh Potatoes -0.14

    Fruit Juices 0.95 Fruit Juices -0.65

    Cross elasticity of demand for beef and mutton


    Beef with respect to the price of mutton 0.10

    Mutton with respect to the price of beef 0.25

    (a) With reference to the data, explain why all the price elasticities of
    demand are negative and some income elasticities of demand are
    positive and some are negative.
    [3 marks]

    (b) Comment on the values shown in the table for the cross elasticity of
    demand for beef and mutton.
    [4 marks]

    (c) Explain clearly the factors that are likely to affect the price elasticity of
    demand for a
    good such as fruit juices.
    [6 marks]

    2
    (d) It is expected that levels of income in the UK will rise. It is likely that
    large food retailers will wish to take account of the data on elasticities
    in their marketing decisions.

    Explain, with examples, how price elasticity of demand might be of


    help to large food retailers.
    [7 marks]

    2. The demand and supply functions of an agricultural product (call it ‘good X’)
    are given by:
    Qd = 50 — 3P
    Qs = P — 10,
    where P is price (in Rs.) per unit, and Qd and Qs are quantities demanded
    and sold, respectively, in thousands of units.
    (a) Find the equilibrium price and quantity good X. Using a demand and
    supply diagram, show how you will represent the above information. In your
    answer, clearly label your axes, prices and quantities and the equilibrium
    price. [Hint: Solve the two equations simultaneously. Alternatively, try
    plotting the curves graphically.] [5 marks]

    (b) Assuming the Mauritian government contemplates to set the price of


    good X Rs 13 per unit. Calculate the resulting shortage or surplus if
    government imposes the above price. [4 marks]

    (c) Suppose a sales tax of Rs. 3 is imposed on each unit of good X.

    (i) Calculate the new equilibrium price and quantity. [6 marks]


    (ii) Explain how the burden of the tax is shared between consumers and
    the seller of good X (that is, who pays how much of the tax). [5 marks]
    (iii) How does the price elasticity of demand for good X affect the incidence
    of the tax? [4 marks]

    3. A firm is operating with 10 machine-hours, which it cannot change before 3


    months. The following schedule describes its production function:

    3
    Labor (man-hours) Output (units)
    1 8
    2 18
    3 26
    4 32
    5 37
    6 41
    7 44
    8 46
    9 47
    10 47

    Derive the marginal product and average product curves. At what point do
    diminishing marginal returns set in? How does this relate to the point of
    diminishing average returns? Explain. [6 marks]

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